Northvolt in $5bn green loan boost for batteries, recycling

Northvolt in $5bn green loan boost for batteries, recycling

Northvolt in $5bn green loan boost for batteries, recycling 906 658 Energy Storage Journal

January 18, 2024: Northvolt has secured a $5 billion loan to expand operations at its Northvolt Ett gigafactory (pictured) in Sweden, the lithium battery developer said on January 16.

The non-recourse loan —  provided by a group of 23 commercial banks as well as the European Investment Bank and the Nordic Investment Bank —    is the first to be raised through Northvolt’s green finance framework, created in 2023.

The loan includes refinancing of a previous $1.6 billion debt package raised in July 2020

Northvolt said the new financing had been raised on the back of long-term offtake contracts amounting to over $55 billion with partners including BMW, Scania, Volvo Cars and Volkswagen Group.

In addition to expanding cathode production and cell manufacturing, the loan will enable the expansion of an adjacent recycling plant, Revolt Ett, which is nearing commissioning and will ultimately process 125,000 tonnes of end-of-life batteries and battery production waste annually.

Northvolt announced in April 2023 that it had received the highest rating attainable (‘dark green’) for its green finance framework from climate risks rating company CICERO (Center for International Climate and Environmental Research).

The rating was awarded after assessing Northvolt’s activities including its commitment to minimizing emissions, recycling and the importance of the company’s batteries to electrification and energy systems.

To date, Northvolt has secured more than $13 billion in equity and debt to enable its expansion in Europe and North America.

Northvolt produced its first battery cell at Northvolt Ett in December 2021 and started commercial deliveries of battery cells to European automotive customers the following June.